Kathmandu: Nepal and India have signed an investment agreement for the construction of the second Butwal-Gorakhpur 400 KV cross-border transmission line.

A Joint Venture and Shareholder Agreement has been signed between Nepal Electricity Authority (NEA) and Power Grid Corporation of India Limited, owned by the Government of India.

The agreement was signed by NEA Managing Director Kulman Ghising and Power Grid Executive Director YK Dixit at a function in New Delhi on Wednesday.

A meeting of the Council of Ministers of the Government of Nepal has already approved the NEA’s proposal to invest 50 percent shares in the company to be set up for the construction of the Butwal-Gorakhpur cross-border transmission line.

The agreement has paved the way for setting up a joint venture company with 50 percent founder share each of NEA and Power Grid for the construction of the section on the Indian side under the transmission line project, said Ghising.